Sensex remains weak as selling continues; Automobile stocks rally

Despite some strong buying in the automobile space, the market, which opened on a weak note on doubts about the pace of economic growth, continues to languish in the red with key stocks from IT, realty and banking sectors trading weak on selling pressure.

FMCG, PSU and oil stocks are trading mixed. Healthcare and metal stocks too are trading mixed. Select capital goods and power stocks are up in positive territory with smart gains. Even as several large cap stocks trade weak, scores of midcap and smallcap stocks are trading sharply higher on strong buying support.

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The Sensex, which declined to 17,094.07 in early trades, is now down 48.50 points or 0.28% at 17,145.05. The Nifty index of the National Stock Exchange is down with a loss of 13.75 points or 0.27% at 5185.50, off the day's low of 5167.80.

In the currency market, the rupee declined against the U.S. dollar with stock markets and concerns about global economic growth causing the slide. About half an hour ago, the rupee was at 49.56 to the dollar, down from Tuesday's close of 49.44/45.

Coal India is down by over 2%. ONGC is also trading lower by a little over 2%. HDFC is down nearly 2%, while ICICI Bank, DLF and Bharti Airtel are down 1.4% - 1.8%. Infosys, Tata Consultancy Services, ITC, HDFC Bank, Sterlite Industries, NTPC, GAIL India and State Bank of India are also trading weak.

PSU oil marketing stocks are down sharply. Indian Oil Corporation is down with a sharp loss of 5.2%. Hindustan Petroleum Corporation and BPCL are also down in the red, losing 2.8% and 2.1%, respectively.

Titan Industries, Container Corporation, IDBI Bank, Indiabulls Real Estate, Asian Paints, Sesa Goa, Apollo Tyres, IRB Infrastructure, Idea Cellular, Bharat Electronics and Siemens are down 1.5% - 2.75% at present.

Hero Motocorp is up nearly 4% at Rs 1936. Mahindra & Mahindra is trading higher by a little over 3.5% at Rs 697. Bajaj Auto and Tata Motors are up by around 1.5% at Rs 1625 and Rs 248 respectively, while Maruti Suzuki is up with a gain of 2.3% at Rs 1215. Maruti Suzuki annoucned today that vehcile sales grew 5.2% year-on-year in January.

The company said it sold 115,433 units in January after consecutive decline in the previous seven months. The company had sold 109,743 units in the same month in the previous year.The company recorded sales of 101,047 units in the domestic market last month, up 0.6% from 100,422 units in January, 2010. exports, however, jumped by 54% in January, 2011, to 14,386 units from 9,321 units in the year-ago period, the company added.

TVS Motor Company witnessed an overall growth of 5% in total sales in January 2012 registering sales of 173,514 units against 165,152 units in January 2011. The stock is up 0.7% at Rs 52.80 now.

Tata Power is up 3.7% and Jindal Steel is gaining about 2.7%. Tata Steel, Larsen & Toubro and Reliance Industries are trading higher by 1% - 1.2%. Cipla, BHEL and Sun Pharmaceuticals are up with modest gains.

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Meanwhile, India's manufacturing sector activity jumped to an eight-month high in January as factories stepped up production on increased demand, data released by HSBC Holdings Plc and Markit Economics showed.

The HSBC-Markit India manufacturing PMI rose to 57.5 in January from 54.2 in December. A reading over 50 indicates expansion while any reading below it implies contraction. India's manufacturing PMI has stayed above the 50 mark for nearly three years.